Japan to relax export curbs to allow overseas sales of joint jet fighter

IHI

13/03/2024 07:58

TOKYO, March 13 (Reuters) - Japan will tweak its
military equipment transfer rules to allow exports of the jet
fighter it is developing with Britain and Italy, the country's
leader said on Wednesday, removing an obstacle that could have
stymied the project.  
    The joint Global Combat Air Programme (GCAP) last year
established a joint organisation and industry group led by
Britain's BAE Systems PLC  BAES.L , Japan's Mitsubishi Heavy
Industries  7011.T  and Italy's Leonardo  LDOF.MI  that aims to
deploy an advanced fighter by the middle of the next decade.    
    Without a loosening of Japan's military export rules, which
ban overseas sales of lethal equipment, Tokyo's partners would
have been unable to sell the aircraft abroad, which would cut
unit costs by spreading development expenses across more planes.
    After months of political wrangling between Prime Minister
Fumio Kishida's ruling Liberal Democratic Party and its
coalition partner Komeito, the government has agreed to allow
exports to countries that have defence equipment transfer
agreements with Japan and are not embroiled in any conflicts,
Kishida told the country's parliament.
    Each export will also require Cabinet approval and the rule
change will be limited to the GCAP fighter, he added. 
   Japan, Britain and Italy may involve other nations as junior
partners in GCAP. Saudi Arabia is among the contenders because
it would bring money and a lucrative market to a project
expected to cost tens of billions of dollars, sources have said.
    Other companies involved in the project include European
missile maker MBDA, Japanese avionics manufacturer Mitsubishi
Electric Corp  6503.T , and engine makers Rolls-Royce PLC
 RROYC.UL , IHI Corp  7013.T , and Avio Aero.

 (Reporting by Tim Kelly; Editing by Gerry Doyle)
 ((mailto:tim.kelly@thomsonreuters.com; +813-6441-1311;))